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The importance of service quality in bank selection for mortgage loans

Constantine Lymperopoulos (Department of Business Administration, University of the Aegean, Chios, Greece)
Ioannis E. Chaniotakis (ATEbank, Athens, Greece)
Magdalini Soureli (Manchester Business School, The University of Manchester, Manchester, UK)

Managing Service Quality: An International Journal

ISSN: 0960-4529

Article publication date: 1 July 2006



This project aims to offer an in‐depth understanding of bank customers' buying behaviour in relation to the selection process, and provide bank managers with useful insight into the development of high quality relationships with customers.


The research involved a review of available literature on bank choice criteria, the fieldwork, the identification of factors that affect customers' choice, and the development of related managerial implications. A research questionnaire was administered by personal interviews to 1,092 bank customers in the greater area of Athens.


Four distinct factors were identified as the main choice criteria that influence consumers' bank choice. Bank service quality is the most important element that customers consider in order to select their mortgage providers and establish a long‐term relationship with them. The other three refer to product attributes, access, and communication.

Research limitations/implications

Limitations relate to the use of non‐probability sample and the restricted geographical area of the field research. This study contributes to the body of academic knowledge by shedding more light into the role of service quality in the selection process of mortgage provider.

Practical implications

An understanding of consumer buying behaviour with respect to mortgage loans is important to bank managers for the attainment of organisational objectives that are focused on building beneficial customer relationships. Management guidelines for improving service quality are presented.


The paper manages to identify the perceived important characteristics of banks and particularly highlight the role of service quality in bank selection for mortgages and further development of long‐term relationships.



Lymperopoulos, C., Chaniotakis, I.E. and Soureli, M. (2006), "The importance of service quality in bank selection for mortgage loans", Managing Service Quality: An International Journal, Vol. 16 No. 4, pp. 365-379.



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